Chancellor George Osborne will claim the British economy is "leaving intensive care" as he unveils his fresh round of spending cuts for Whitehall.

Mr Osborne will deliver his spending review on Wednesday, setting out £11.5 billion of cuts in Government departments in the year after the next general election.

Alongside the cuts the Chancellor will announce plans for an infrastructure plan to "power Britain back into the economic premier league", using savings to invest in roads, railways, education and science.

Final details of the spending review were still being worked out, with reports suggesting some ministries, including Vince Cable's Business Department, were yet to agree their settlements.

Mr Osborne is expected to tell MPs on Wednesday: "Britain is moving from rescue to recovery. But while the British economy is leaving intensive care; now we need to secure that recovery.

"Full recovery won't be easy but I won't let up in my determination to put right what went so badly wrong. We are already making progress: the economy is growing, more than a million new jobs have been created by British businesses and the amount the government has to borrow each year - the deficit - is down by one third.

"But there's more we have to do - it's time for the next stage of our economic plan."

Mr Osborne has come under pressure to invest in capital projects in order to help the fragile recovery and he will give details of "a long term infrastructure plan".

He will say: "We're saving money on welfare and waste to invest in the roads and railways, schooling and science our economy needs to succeed in the future.

"I know that times are still not easy for families. But we have a clear economic plan. We've stuck to it. It is working. And I'm determined to go on delivering it. Now, together, we're moving Britain from rescue to recovery let's build an economy that works for everyone."

Labour leader Ed Miliband has announced that he will not rbe able to reverse any of Mr Osborne's cuts in day-to-day spending, but Mr Osborne will attack the Opposition for scaremongering about the effects of his austerity programme.

He will say: "Three years ago Labour tried to scare the country about the pain to come if any Government actually to dared to cut spending and borrowing.

"But their predictions haven't come true. They said crime would soar if we saved money from police budgets - it's fallen.

"They said saving money in the Border Agency would stop us reducing immigration but immigration is down by a third. They said the private sector would never make up for jobs lost in the public sector but it has done three times over. They were wrong last time so don't believe the same old scare stories this time."

Shadow chancellor Ed Balls urged Mr Osborne to pump money into the economy now in order to reduce the need for cuts in two years' time.

Writing in the Sunday Mirror he said: "Instead of planning more cuts two years ahead, they should use this week's spending review to boost growth and living standards this year and next year.

"More growth now would bring in more tax revenues and mean our public services would not face such deep cuts in 2015."

He said the Government should boost lending to businesses with a new British Investment Bank and reintroduce the 10p income tax band.

Mr Balls added that ministers should "get construction workers back to work repairing Britain's broken roads and building the affordable homes we need".

In a keynote speech yesterday Mr Miliband told his party's National Policy Forum in Birmingham: "Nobody here should be under any illusions: the next Labour government will have to plan in 2015 for falling Departmental spending.

"And our starting point for 2015/16 is that we won't be able to reverse the cuts in day to day, current spending unless it is fully funded from savings elsewhere or extra revenue, not from more borrowing.

"So when George Osborne stands up next week and announces his cuts in day to day spending, we won't be able to promise now to reverse them because we've got to be absolutely crystal clear about where the money is coming from.

"We will show the discipline the challenge of our times demand. It is the only way we can credibly change our country. It's a hard reality.

"I am clear about it. Ed Balls is clear about it. And everyone in the Labour Party should be clear about it too."